ZAGREB, 17 March 2022 - The government adopted a regulation on Thursday aimed at curbing the fuel price hike for distributors which will be in force until the end of the year, significantly reducing the environmental levy from HRK 0.30 to just HRK 0.01 per megajoules (MJ) for omitting to add biofuel on the market.

Reducing the levy from HRK 0.30 to 0.01 per MJ will result in a HRK 0.50 decrease per litre for consumers.

According to the incumbent regulation, if a distributor/supplier of petrol and diesel fuel does not add a mandatory minimum share of biofuel, they were obliged to pay a green levy to the Fund for Environmental Protection and Energy Efficiency.

Economy and Sustainable Development Ministry State Secretary Mario Šiljeg explained that the intention was to stabilise fuel prices in the aftermath of uncontrolled price hikes on the oil market, primarily caused by disruptions in supplies due to the Ukraine crisis.

The government also amended the regulation to provide additional protection to consumers, by intervening in the formula that determines the highest retail price of oil products which also takes into account the price related to the costs of transport and handling biofuel.

Fuel prices increased again on Tuesday with "Eurosuper 95" costing HRK 13 per litre which was an overnight jump of HRK 0.82 per litre. The price of Eurodiesel jumped by HRK 1.40 per litre while diesel premium price increased by HRK 0.15 per litre.

The government expects fuel prices to go down next week.

(€1 = HRK 7.5)

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